2020 has been a challenging year – job losses / furloughs, pay decreases, health challenges and more. This was the year that you needed your finances in order and an emergency savings to fall back on. Plan ahead so that you will be financially prepared in your time of need.
Before 2020 ends, you may want to consider these steps to help with your finances and do them in this calendar year:
- If you pay estimated taxes, consider making your January payment before Dec 31.
- If possible, you can prepay your January installment of your real estate taxes before Dec 31. This may be difficult to do if your taxes are escrowed in your mortgage payment. You will need to check with your town’s tax department for details in your city / town.
- Fully fund (or as much as you can) your retirement accounts – IRA and Roth IRA’s (you can do this in 2021 for 2020 too).
- Fully fund (or as much as you can) your HSA (you can do this in 2021 for 2020).
These steps may work to your advantage with your income tax. Always check with your tax preparer about your individual situation.